Financing
By the time Castellum was listed in 1997, it had already established that the company would have a low level of financial risk – expressed today in the formulation that the long-term loan-to-value ratio should not exceed 40 per cent and that the interest coverage ratio should be at least 300 per cent.
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Strategy for financing
Castellum’s financing strategy will support the business operations and manage the Group’s financial risks while working for an open and transparent climate.
Financial policy and commitments in credit agreements
|
Policy |
Commitment |
Outcome |
|
|
Loan-to-value ratio |
Not exceeding 40% |
Not exceeding 65% |
38.2% |
|
Interest coverage ratio |
>3.0 |
>1.5 |
3.2 |
|
The share of secured borrowing/total assets |
|
Not exceeding 45% |
17% |
|
Funding risk |
|
|
|
|
– average debt maturity |
At least 2 years |
|
3.6 years |
|
– maturing within 1 year |
No more than 30% of loans outstanding and unutilised credit agreements |
|
11% |
|
– liquidity reserve |
Liquidity reserve corresponding to 12 months’ impending loan maturities |
|
Achieved |
|
Interest rate risk |
|
|
|
|
– average interest duration |
1.5–4.5 years |
|
3.3 years |
|
– maturing within 6 months |
No more than 50% |
|
24% |
|
Credit and counterparty risk |
|
|
|
|
– rating restriction |
Credit institutions with high ratings, at least S&P BBB+ |
|
Achieved |
|
Currency risk |
|
|
|
|
– net exposure in foreign currency |
Maximum 10 per cent of balance sheet total |
|
Achieved |
